The Current Price of a Share of Common Stock Reflects

Multiple Choice

The current price of a share of common stock reflects current economic conditions, not the requirements of authoritative guidance.Market-to-book-value ratios tend to be large for firms that

A) make substantial expenditures on internally developed assets.
B) have a favorable competitive position.
C) have a favorable growth potential.
D) All of the above are correct.
E) None of these answer choices is correct.